Towing Company w/ $1.1M of RE Included 🛻

Under the Radar Weekly Deals

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👋 Hey fellow searchers,

Hope you had a great weekend and welcome back to Under the Radar!

Let’s get right into it.

This week’s issue features:

  • ⛵️ Marine supply co w/ $695K annual SDE

  • 🛻 Towing company w/ $1.1M of RE included

  • 🚧 Roadside paving and repair biz w/ $1.3M annual SDE

Hot Deals 🔥

Analyses of the best deals we found across top marketplaces and brokerages.

#1. Marine supply co w/ $695K annual SDE

🏷️ Asking Price: $1,700,000

📍 Location: Towson, MD

Overview: Operating since 1957, this Towson-based marine supply company is a cornerstone in the nautical charts and equipment industry. Recognized as one of the largest nautical chart agents in the U.S., the business stocks an extensive selection of electronic and paper nautical charts, navigation tools, safety signage, and other marine supplies. It is an ISO 9001 Registered Firm and an “International Admiralty Chart Agent,” signifying its credibility and global reach. With over six decades of operation and a dedicated team of six employees, this company offers a steady income stream and a well-established reputation. The seller is prepared to provide one month of training to ensure a seamless transition.

Key Highlights

  • ~$1.65M revenue

  • ~$695K annual SDE

  • Leased RE

  • 6 employees

Growth Avenues 🚀

  • Build an updated online platform to offer products directly to global customers and capture the growing online retail market.

  • Collaborate with marine schools to supply navigation guides, study materials, and plotting tools.

Potential Risks 🚩

  • Larger competitors or technology companies entering the marine navigation space could disrupt traditional business models.

  • A shift from paper to digital charts may require the business to adapt quickly to remain relevant.

Questions❓

  • How has the demand for digital navigation tools and software evolved over the last five years?

  • Are there existing contracts or service agreements with major clients, and are they transferable?

  • What percentage of revenue comes from repeat customers versus new customers?

#2. Towing company w/ $1.1M of RE included

🏷️ Asking Price: $3,800,000

📍 Location: DFW, TX

Overview: Established in 2005, this towing and diesel repair business is a trusted name across the DFW Metroplex and surrounding counties. Renowned for its 24-hour operations and customer service excellence, the business has carved a niche as a comprehensive towing and repair provider. It boasts a physical facility with numerous bays, lifts, and a towing lot included in the sale. Two virtual locations extend the company’s reach, making it a dominant player in the regional market. With a strong absentee-run model, this business offers a rare opportunity for investors or industry operators seeking a turnkey, high-margin venture.

Key Highlights

  • ~$1.31M annual revenue

  • ~$828K annual SDE

  • $1.1M RE (included)

  • $570K FF&E (included)

  • 18 employees

Growth Avenues 🚀

  • Invest in additional tow trucks to meet growing demand, particularly in surrounding counties.

  • Secure contracts with trucking companies for recurring repair and maintenance work.

Potential Risks 🚩

  • Retaining skilled diesel mechanics and drivers is critical to maintaining service levels and customer satisfaction.

  • The DFW area has established towing and repair competitors that could limit expansion.

Questions❓

  • What is the condition and maintenance history of the towing fleet and repair equipment?

  • What is the skill level and tenure of the 18 employees, particularly mechanics and drivers?

  • What differentiates this business from its direct competitors in the DFW area?

#3. Roadside paving and repair biz w/ $1.3M annual SDE

🏷️ Asking Price: $2,895,000

📍 Location: Virginia

Overview: This well-established business has been serving the state of Virginia since 1985, specializing in roadside ditch cleaning and pavement coating services. It holds a unique position in the market as the only private company operating specialized equipment for roadside and ditch maintenance, a critical service for managing stormwater runoff and preserving infrastructure. With strong contracts in place with the Virginia Department of Transportation (VDOT) and several cities, this business operates with a significant footprint across the state. The company also includes an asphalt division focused on niche services like tennis court repairs and commercial seal coating, contributing to its diversified revenue streams.

Key Highlights

  • ~$2.94M annual revenue

  • ~$1.34M annual SDE

  • Holds 3 VDOT contracts

  • 6 trucks included

  • 9 employees

Growth Avenues 🚀

  • Leverage the business’s existing relationships with VDOT to secure additional contracts or expand to new regions within the state.

  • Implement modern software for scheduling, project management, and client communication to improve efficiency and attract new clients.

Potential Risks 🚩

  • Heavy reliance on VDOT contracts may pose revenue risks if contract terms change or funding decreases.

  • The business’s reliance on six specialized trucking units means that any significant equipment failure could disrupt operations and revenue.

Questions❓

  • What are the renewal terms for the VDOT and municipal contracts, and how often are they up for bid?

  • What is the condition and age of the six specialized trucking units?

  • What percentage of revenue comes from VDOT contracts versus municipal or private clients?

Other Hot Deals 🔥

Radar Picks 📡

Bit-sized reads featuring insights and fresh perspectives

Tweet of the Week 🐦

This week’s featured tweet comes from Sam Rosati, who demystifies what SBA lenders evaluate beyond just financials. From buyer expertise to industry dynamics and post-closing liquidity, Sam’s insights offer a clear picture of how lenders set both borrowers and banks up for success. Anyone navigating SBA financing should keep this in mind! 👇

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DISCLAIMER: This newsletter is for informational purposes only and should not be considered financial advice. It offers analyses of businesses without endorsing any specific financial actions. Readers are advised to do their own research and consult a professional before making investment decisions.